The equity gains prompted investors to sell safe-haven assets ahead of the first leg of this week's $78 billion quarterly U.S. government refunding, pushing Treasury yields higher.

Equity markets around the world neared a six-month high on Tuesday, buoyed by a rebound in Chinese stocks and an earnings-driven surge on Wall Street, while oil prices rose on concerns U.S. sanctions against Iran could cause supply shortages.

The equity gains prompted investors to sell safe-haven assets ahead of the first leg of this week's $78 billion quarterly U.S. government refunding, pushing Treasury yields higher.

The dollar weakened against the euro on a more stable Chinese yuan after the currency pair neared but failed to break through technical levels supporting the single currency.

U.S. corporate revenues are growing at a time the European and Japanese central banks continue to prop up their economies, which is suppressing shorter-term interest rates, said Michael Kelly, global head of multi-asset at PineBridge Investments.

"Profits are incredible, actually, and it's not just tax-cut sugar highs," Kelly said.

Of the 428 companies in the S&P 500 that have released second-quarter earnings so far, 79 percent reported above analyst expectations, a beat rate that if it holds will be the highest since Thomson Reuters started reporting the figure in 1994.